Graph of this issue: https://pbs.twimg.com/media/DtFqnAZXcAAV0ck.jpg
Amid the incessant geopolitical tumult coming out of Washington and elsewhere, tech stocks have served as an island to which investors have been able to retreat and earn outsized returns.
In fact, there's an argument to be made that the sector actually has benefited from some of the more prominent headline risks. Tech stands to gain perhaps more than any other sector if President Donald Trump's saber-rattling trade strategy works out, and the administration-backed tax cuts have put more money in shareholders' pockets through a history-making jump in share buybacks that have been skewed toward the sector.
All in all, tech has served a multitude of purposes, from a cyclical play amid economic growth and rising interest rates, and as pure quality amid fears that corporate profits are peaking.
"They're really not driven by a lot of these headline macro variables. They've also stayed out of the Washington limelight in terms of being part of a tweetstorm or what have you," said Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors. "They're going to be more heavily driven by fundamentals, which continue to be supportive.
Do you think the tech sector will continue to perform like in the shown graph?
The exponential growth is crazy, and the stock market bumps will be hard on the way, I think
Submitted November 28, 2018 at 12:41PM by gorillaz0e https://ift.tt/2TQutlg
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